Introduction and Key Metrics

 

We seek to minimise our cost of capital through the appropriate mix of equity and debt finance, and ensure that we have access to sufficient financial resources to successfully implement our business plans.

As a property company, we believe that we should deliver returns that are enhanced - and not driven - by our financial leverage. Historically, we have maintained low gearing relative to the property sector. This helps provide downside protection when operating in the cyclical central London property markets, as well as maintain the financial flexibility to allow us to act quickly on new investment opportunities as they arise. Our sources of debt funding are diverse, both secured and unsecured, and include the public, private and bank markets. We maintain an attractive debt maturity ladder that fits our business.

 

March 2017

March 2018*

Net debt excluding JVs (£m)

309.9

243.0

Net gearing

11.6%

11.8%

Total net debt including 50% JV non-recourse debt (£m)

383.8

315.7

Loan-to-property value

12.2%

11.6%

Total net gearing

14.4%

15.4%

Interest cover

n/a

n/a

Weighted average interest rate

2.7%

2.3%

% of debt fixed/hedged

100%

100%

Cash and undrawn facilities (£m)

618

666

*Pro forma for £306m capital return, sales completed since 31 March 2018 and £100m USPP funding in June 2018

Sources of debt funding

1. Based on pro forma committed facilities.

Debt maturity profile

1. Based on pro forma committed facilities.

LTV and cost of debt %

1. Pro forma for £306 million capital return, sales completed since 31 March 2018 and draw down of £100 million USPP notes. 

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